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What to Expect from Interactive Brokers in 1Q18

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Apr. 9 2018, Updated 4:40 p.m. ET

Expected EPS

Interactive Brokers Group (IBKR) is expected to report its 1Q18 earnings on April 17, 2018. The report will cover the quarter ending March 2018. Wall Street analysts have given a high estimate of $0.6 for earnings per share (or EPS) and a low estimate of $0.48 in 1Q18. However, an average estimate by these analysts for 1Q18 EPS is $0.55, a rise on a YoY basis.

Interactive Brokers could benefit from market volatility in 1Q18, as this could lead to a rise in trading activities. Moreover, the company has also witnessed a substantial increase in daily average revenue trades (or DARTs) in March 2018 on a YoY basis.

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Revenue expectations

Wall Street analysts’ high estimate for the company’s 1Q18 revenues stood at $510.5 million, while their low estimate stood at $424 million. However, analysts’ average estimate for 1Q18 revenues is $469.43 million, which implies an increase on a YoY basis.

Interactive Brokers garnered $515 million of revenues in 4Q17, while in 4Q16, the company generated $193 million. The company saw favorable momentum in 4Q17 with respect to commissions as well as net interest income compared to 4Q16. Other brokerage companies (XLF) like TD Ameritrade Holding (AMTD), Charles Schwab (SCHW), and E*TRADE Financial (ETFC) could also witness upward momentum in their net interest income moving forward on the back of expected rate hikes by the Federal Reserve in 2018.

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